abrdn plc
abrdn launches CEO succession
plan
abrdn plc ("abrdn" or "the Group")
today announces that it is beginning the process of moving to fresh
leadership, having completed the critical first stage of its
transformation into a modern and digitally-focused specialist asset
and wealth management company. Following the significant strategic
repositioning of the company, the Board and Group CEO, Stephen
Bird, have together agreed that it is the right time for Stephen to
hand over the reins to the team he has assembled over the last four
years to drive the business forward.
Jason Windsor, currently Group Chief
Financial Officer, has today been appointed as Interim Group CEO,
subject to regulatory approval, while a formal search process,
which will include consideration of external candidates, is
completed. Jason will focus on the execution of the Group's
strategy and transformation plans, and Stephen will work alongside
Jason until 30th June, which marks the four-year anniversary of his
appointment, to ensure a smooth handover.
Sir Douglas Flint, Chairman of abrdn,
said:
"On behalf of the Board, I want to
thank Stephen for everything he has achieved at abrdn over the last
four years. He joined us as the pandemic took hold and, despite the
restrictions this imposed, spearheaded a fundamental reshaping of
the company, leading from the front to create a company that can be
competitive in a fast-evolving sector. Adapting the inherited
business model to be capable of generating sustainable and
profitable growth required strategic vision, intense hard work and
the courage to make tough but necessary decisions. While this was
underway, Stephen took time to assemble the talent needed to
execute successfully on his strategic vision and he passes on to
them, with confidence, the responsibility to execute the next stage
of our transformation. We owe him a great debt of gratitude and
wish him well in the next phase of his career.
Jason brought significant and
relevant leadership experience to abrdn and since his arrival last
year has made a strong start. The Board looks forward with
confidence to working with him in his new role as our Interim Group
CEO."
Stephen Bird, said:
"I am immensely proud of the work we
have done together to simplify abrdn and position the company for
sustainable growth. Together with a refreshed leadership team and
an incredibly committed group of colleagues at all levels, we have
refocused our global Investments business as a specialist asset
manager, working to address its cost base and build mutually
beneficial linkages with our wealth businesses. abrdn's position in
the UK wealth market has been transformed through the acquisition
of interactive investor together with investment in our Adviser
business; these are essential moves as the ongoing democratisation
of savings responsibilities reinforces the demand for simple and
cost-effective platform solutions to support individuals as they
address their long-term financial needs.
It has been a privilege to lead abrdn
through an intensely challenging time in our industry and I am
grateful to my colleagues for their support and commitment to
serving our clients with distinction. I leave the company well
positioned, having embedded greater diversification of revenues,
retained a strong capital position and, most importantly, developed
a refreshed leadership team which is ready and eager to take on the
challenge of realising abrdn's full potential."
On 24 April 2024, abrdn announced its
Q1 AUMA and Flows Trading Update, with AUMA up by 3% to £507.7bn
and total net inflows £0.8bn in the quarter. Trading and net flows
thus far in Q2 have shown similar trends to Q1, and abrdn will
announce its first half results on 6 August 2024.
Information regarding the
compensation arrangements for Stephen Bird are set out in the
Appendix and follow the remuneration policy approved by
shareholders at the 2023 AGM. Compensation arrangements for Jason
Windsor upon moving to the Interim Group CEO role are also set out
in the Appendix.
24 May 2024
Enquiries:
Media
Sarah Moody
|
+44 (0) 7721 679 892
|
Duncan Young
|
+44 (0) 7920 868 865
|
Institutional
Equity Investors
Jo Blackshaw
|
+44 (0) 7771 786 275
|
Group
Secretariat
Paul McKenna
|
+44 (0) 7736 853 801
|
Notes
This announcement is made pursuant to
Listing Rule 9.6.11.
This announcement contains inside
information. The person responsible for making this announcement on
behalf of the Group is Paul McKenna (Group Company
Secretary).
As required by section 430(2B) of the
Companies Act 2006, details of the remuneration payments and
related exit terms made to or to be made to Mr Bird in accordance
with his employment contract will be published on abrdn's website
and are set out in the attached Appendix.
LEI number of abrdn plc:
0TMBS544NMO7GLCE7H90
Classification: 3.1. Additional
regulated information required to be disclosed under the laws of
the United Kingdom.
Appendix - Remuneration Arrangements
Stephen Bird - Remuneration Arrangements
Further to our RNS announcement on
24 May 2024, Stephen Bird stepped down as Group Chief Executive
Officer and as a Director of abrdn plc on 24 May 2024.
Details of the remuneration payments and related exit terms
made or to be made to Mr Bird are set out below.
These terms were the subject of
careful consideration by the Remuneration Committee and are in line
with the Company's Directors' Remuneration Policy ('Policy') which
was approved by shareholders at the 2023 AGM:
Salary and benefits
· 12-month notice period commenced on 24 May 2024.
· Garden leave with effect from 1 July to 31 December 2024
inclusive. During this period, Mr Bird will remain available to
support the transition and will receive his salary and contractual
benefits as usual.
· At the end of this period, Mr Bird will be paid in lieu of the
balance of his notice period from 1 January 2025 to 23 May 2025.
Payment in lieu will include basic salary, pension entitlement and
contractual benefits, and will be paid in monthly instalments
(subject to mitigation) .
· Employment will, therefore, terminate on 31 December 2024 (the
'Termination Date').
Annual Bonus
· Eligible for a pro-rated Annual Bonus in respect of the 2024
financial year to reflect the portion of the year prior to the
commencement of garden leave (1 January 2024 to 30 June
2024).
· The Annual Bonus will be determined and paid on the normal
timetable and subject to Policy requirements including deferral and
the application of malus and clawback.
Share Awards
· Treated as a good leaver under the abrdn plc Annual Bonus
Deferred Share Plan ("DSP") and Long-Term Incentive Plan ("LTIP")
in accordance with the plan rules, including the application of
malus and clawback.
· Unvested DSP awards will continue to vest on normal vesting
dates and will not be subject to time pro-rating.
· Unvested LTIP awards will continue to vest on normal vesting
dates and will remain subject to the satisfaction of the relevant
performance conditions (measured over the full performance period)
and holding periods. All awards will be prorated based on the
proportion of the performance period for each award completed to
the Termination Date.
· Mr Bird will be required to comply with the
post-cessation shareholding requirements for a two-year
period from the date he stepped down from the Board.
Further information
· Other than the amounts disclosed above, Mr Bird is not
eligible for any remuneration payments or payments for loss of
office.
In accordance with section 430(2B)
of the Companies Act 2006, the information contained in this
document will be made available on abrdn's website until its next
Directors' Remuneration Report is made available.
Jason Windsor - Interim Arrangements
During the period that Mr Windsor is
performing the Interim Group CEO role, in addition to his annual
salary he will receive an annual salary supplement of £200,000,
pro-rata for the duration of the interim period. There will be no
change to his pension or other benefits.